India Breaking Buzz

SpiceJet’s stock increases by 4% after the resolution of a R93 Cr dispute with cross-ocean partners

<p>In Tuesday’s trading, SpiceJet Ltd.’s shares increased 3.87 percent to reach a day high of Rs 65. This follows SpiceJet’s Tuesday announcement to the Delhi High Court that it and aircraft leasing company Cross Ocean Partners had reached a settlement over their Rs 93 crore dispute.</p>
<p><img decoding=”async” class=”alignnone wp-image-475399″ src=”” alt=” spicejets stock increases by 4 after the resolution of a r93 cr dispute with cross” width=”947″ height=”710″ title=”SpiceJet's stock increases by 4% after the resolution of a R93 Cr dispute with cross-ocean partners 3″></p>
<p>SpiceJet will get other assets, such as an engine and an airframe, as part of this settlement. According to the corporation, this settlement will result in significant savings.</p>
<p>“The parties jointly announced this before the Delhi High Court in relation to Cross Ocean Partners’ pending execution petition. SpiceJet is anticipated to save a substantial amount of money as a consequence of the settlement, which will also end the conflict. The airline said, “As part of the arrangement, the airline will also benefit from the transfer of an engine and an airframe at no additional cost, enhancing its operational capabilities.”</p>
<p>We are happy to have worked with Cross Ocean Partners to come to a mutually agreeable arrangement that will stop the costly and time-consuming legal battle and save SpiceJet a substantial amount of money. Our resolve to efficiently resolve disputes with our partners and bolster our operational capacities is reaffirmed by this settlement. We’re still committed to building long-term value for our stakeholders and maintaining the good momentum,” said Ajay Singh, Chairman and Managing Director of SpiceJet, in a statement.</p>
<p>A comparable settlement was also recently reached by SpiceJet with Celestial Aviation, a division of AerCap, one of the biggest groups of aircraft lessors. The amount of the settlement was $29.9 million, or Rs 250 crore.</p>
<p>The counter was trading below the 10-day, 20-day, 30-day, and 50-day simple moving averages (SMAs) but above the 5-day, 100-day, 150-day, and 200-day SMAs in terms of technical setup. The relative strength index (RSI) for the stock after 14 days was 48.90. Oversold is defined as a level below 30, while overbought is defined as a number beyond 70. With a negative price-to-book (P/B) ratio of 1.61, the company’s stock has a negative price-to-equity (P/E) ratio of 47.25.</p>
<p>SpiceJet has been experiencing financial difficulties for the last several quarters, which has resulted in the grounding of many aircraft and the return of certain leased jets to their lessors.</p>
<p>Due to non-payment of lease rentals, some of the airline’s lessors have even taken it to court.</p>
<p>By the end of February, SpiceJet said that it had collected an additional Rs 316 crore via the issuance of preferred shares, bringing its total fundraising to Rs 1,060 crore. SpiceJet obtained a first tranche of funding in January, amounting to Rs 744 crore, via the preferential issue of stocks.</p>
<p>The airline had announced on December 12 that it would issue securities to raise an additional Rs 2,250 crore in capital.</p>

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